Published on 11/16/2021 in the Prospect News Green Finance Daily and Prospect News High Yield Daily.
New Issue: Covanta prices $300 million eight-year notes at par to yield 4 7/8%
By Paul A. Harris
Portland, Ore., Nov. 16 – Covanta Holding Corp. priced a $300 million issue of eight-year sustainability-linked notes at par to yield 4 7/8% on Tuesday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 5% area.
Credit Suisse Securities (USA) LLC was the left bookrunner. Joint bookrunners were Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Credit Agricole CIB, Fifth Third Securities Inc., Goldman Sachs & Co. LLC, MUFG, RBC Capital Markets LLC, Stifel Nicolaus & Co. Inc. and TD Securities (USA) LLC.
Proceeds plus other financing transactions will be used to fund the buyout of the company by EQT Infrastructure, to repay Covanta term loans and revolving loans and to redeem certain Covanta debt, including its 2025 notes.
The issuer is Covert Mergeco, Inc., which will be merged with and into Covanta Holding, a Morristown, N.J.-based provider of sustainable waste and energy solutions.
| Issuer: | Covert Mergeco, Inc., to be merged with and into Covanta Holding Corp.
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| Amount: | $300 million
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| Maturity: | Dec. 1, 2029
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| Securities: | Sustainability-linked notes
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| Left bookrunner: | Credit Suisse Securities (USA) LLC
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| Joint bookrunners: | Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Credit Agricole CIB, Fifth Third Securities Inc., Goldman Sachs & Co. LLC, MUFG, RBC Capital Markets LLC, Stifel Nicolaus & Co. Inc. and TD Securities (USA) LLC
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| Coupon: | 4 7/8%
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| Price: | Par
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| Yield: | 4 7/8%
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| Spread: | 336 bps
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| First call: | Dec 1, 2024 at 102.438
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| Trade date: | Nov. 16
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| Settlement date: | Nov. 30
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 5% area
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| Marketing: | Roadshow
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